Which of the Following Statements Is FALSE

question 93

Multiple Choice

Which of the following statements is FALSE?

• A) The IRR of an investment in a zero-coupon bond is the rate of return that investors will earn on their money if they buy a default free bond at its current price and hold it to maturity.
• B) The yield to maturity of a bond is the discount rate that sets the future value of the promised bond payments equal to the current market price of the bond.
• C) Financial professionals also use the term spot interest rates to refer to the default-free zero-coupon yields.
• D) When we calculate a bond's yield to maturity by solving the formula, Price of an n-period bond = + + ... + , the yield we compute will be a rate per coupon interval.

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Definitions:

Stages of Change

A model outlining the steps an individual goes through when modifying behavior, including precontemplation, contemplation, preparation, action, and maintenance.

Motivational Interviewing

A counseling approach designed to help individuals find the motivation to make positive decisions and accomplish established goals.

Contemplation Stage

A phase in the process of change where individuals are aware of a problem and are considering making a change but have not yet committed to action.

Drinking Water

Water that is safe for consumption by humans and other life forms.